top of page

Paper Tax Refund Checks Are Ending — What Executive Order 14247 Means for You

On January 27, 2026, the IRS published FS-2026-02, a fact sheet of frequently asked questions about Executive Order 14247, "Modernizing Payments To and From America's Bank Account". The order, signed March 25, 2025, directs the Treasury Department and IRS to transition to fully electronic federal payments — both money going out (refunds, benefits) and money coming in (tax payments, fees).

Sabih Shafi, EA — Enrolled Agent, All State Tax Resolution

The short version: paper refund checks started phasing out September 30, 2025. The IRS is pushing everyone toward direct deposit and electronic payment methods. Checks and money orders are still accepted for now when paying the IRS, but that window is closing over time. Here's the full breakdown, topic by topic, with links to every IRS source cited.

You can read the complete FAQ on IRS.gov here.

Why This Is Happening

The IRS's stated reasons are straightforward: paper checks are far more likely than electronic payments to be lost, stolen, altered, or delayed. The transition is about fraud prevention, speed, accuracy, and cost. Electronic payments post faster, have lower processing costs, and reduce errors compared to mailed checks or money orders.

Importantly, this does NOT change how you file your tax return. You'll still file the same way. What's changing is how money moves between you and the Treasury — refunds out and payments in. The IRS says it will publish all guidance needed for filing 2025 returns before the 2026 filing season opens.

Topic A: Individual Refunds and Disbursements

This is the part most people care about. Here are the key takeaways:

Paper refund checks are largely done. After September 30, 2025, the IRS generally stopped issuing paper refund checks for individual taxpayers. A limited number of paper checks will still be issued where no alternative is available, and certified payments continue in limited circumstances. (IRS FAQ A1)

No bank account? You can still get your refund. Direct deposit remains the primary method, but the IRS says alternative electronic options will be available — including certain mobile apps and prepaid debit cards. Limited exceptions to the paper check phase-out will exist for specific situations. (IRS FAQ A2)

What you should do now:

  • Make sure your direct deposit information is current when you file

  • If you don't have a bank account, consider opening a low- or no-cost account — resources are available at FDIC: GetBanked and MyCreditUnion.gov

  • Monitor IRS.gov for updates on alternative payment options and exception processes

Will refunds be delayed? In most cases, no. Electronic delivery is faster than paper checks and eliminates the risk of a check being lost or stolen. (IRS FAQ A4)

What happens if you don't include direct deposit info? Providing banking information is voluntary — your return will still be accepted and processed. But if you're owed a refund and the info is missing, here's the sequence:

  • If e-filing, you may get an alert about missing banking information

  • The IRS will send a letter to your last-known address asking you to update your banking info

  • If no response, you'll receive a CP53E notice requesting a response within 30 days — either provide banking info or explain why you can't

  • You can update your info through your IRS Individual Online Account

  • The Where's My Refund? tool will show messaging about the need for banking information

  • Once you provide the info (or an exception), the refund is released immediately via direct deposit or paper check

  • If there's no response after six weeks, the refund is released as a paper check

The IRS will NOT call or text you for banking information. They will only send a letter through the U.S. mail. This is important — any call or text claiming to be the IRS asking for banking details is a scam. (IRS FAQ A6)

Decedent refunds: No changes yet. The IRS continues issuing paper checks for deceased persons' refunds under current practice. Additional guidance will come later. (IRS FAQ A7; see also IRS deceased taxpayer page)

Topic B: Payments to the IRS

Yes, this applies to payments you send in too — not just refunds coming out. The Executive Order covers both directions. This includes tax liabilities, enrolled agent fees, pre-filing agreements, and advance pricing agreement fees.

Checks and money orders are still accepted — for now. But the IRS is strongly encouraging electronic payments and will reduce reliance on paper over time. Limited exceptions will remain for hardships and legal/procedural requirements. (IRS FAQ B1–B2)

Electronic payment options currently available:

Check the Payment options page on IRS.gov to see which methods are available for your specific situation.

EFTPS is being sunset for individuals. As of October 17, 2025, new individual enrollments via EFTPS.gov are closed. If you're already enrolled, you can keep using it — but the IRS encourages transitioning to your IRS Online Account or IRS Direct Pay. All individuals will be required to transition from EFTPS later in 2026. (IRS FAQ B4)

Confirmation and receipts: Unlike mailed checks, electronic payments immediately generate a confirmation number and receipt or send confirmation emails you can save or print. (IRS FAQ B7)

Frequency limits: There are limits on how often you can use debit cards, credit cards, or cash for certain types of tax payments. Check the Frequency limit table by type of tax payment. (IRS FAQ B8)

Federal Tax Deposits must be electronic. Businesses cannot use cash or card payments for Federal Tax Deposits (FTD). They must be deposited electronically via a business tax account, Direct Pay for businesses, or EFTPS. Deposits not made electronically may be subject to a penalty. See the Failure to Deposit Penalty page. (IRS FAQ B9)

IRS employees still accept paper checks for now when working directly with a taxpayer, but you're encouraged to use digital options first. (IRS FAQ B10)

Topic C: Businesses

Business refund direct deposit is expanding. In the first year of implementation (after Sept. 30, 2025), the IRS is adding direct deposit options to most business tax return types. Over time, paper check refunds for businesses will be phased out. (IRS FAQ C1)

Business payment options:

Bulk payments (payroll, trustee accounts): The IRS says it will expand digital payment options for bulk or large payments. Additional guidance will come as updated applications become available. (IRS FAQ C3)

Topic D: International Taxpayers

No U.S. bank account? International taxpayers should continue using existing options for now. The IRS is developing secure alternatives, including partnerships with international payment providers, to ensure timely refund access abroad. (IRS FAQ D1)

Making payments from abroad: Wire transfers remain available. The IRS is working to expand existing services to new countries and exploring additional cross-border payment solutions. (IRS FAQ D2)

Topic E: Third-Party Stakeholders (Tax Pros, Trustees, Payroll Providers)

Third parties who transact with the IRS on behalf of others will be expected to use electronic payment methods. The IRS says it will provide updated guidance, technical resources, and outreach — including training, webinars, and FAQs — to help stakeholders adapt. (IRS FAQ E1, E3)

Batch payments today: The EFTPS Batch Provider tool can be used by tax professionals and others making multiple federal tax payments on behalf of clients or businesses. (IRS FAQ E2)

Trustees without electronic systems: The IRS will accept paper checks when electronic methods aren't available for a transaction type or in hardship/legal situations. (IRS FAQ E4)

Circular 230 compliance: Tax professionals can use electronic methods like EFTPS or Electronic Funds Withdrawal (EFW) and remain in compliance with Circular 230. (IRS FAQ E5)

What This Means for You — The Bottom Line

  • If you're owed a refund: Make sure your direct deposit info is on your tax return. No bank account? Look into FDIC GetBanked or MyCreditUnion.gov for free or low-cost account options. The IRS is also working on prepaid debit card and mobile app alternatives.

  • If you pay the IRS: You can still mail a check for now, but electronic is faster, cheaper, and gives you a receipt. Use IRS Direct Pay (free, from your bank account) or your IRS Online Account.

  • If you're a business owner: Direct deposit for business refunds is expanding. Federal Tax Deposits must already be electronic. Start transitioning your payment systems now.

  • If you're an international taxpayer: Wire transfers still work. The IRS is building new cross-border options. Monitor for updates.

  • If you're a tax professional: Start transitioning clients off paper. EFTPS Batch Provider and EFW are the current electronic batch options. Watch for IRS training resources.

The IRS emphasizes that these FAQs may be updated, and that prior versions will be maintained on IRS.gov so taxpayers who relied on an older version can still find it. If you rely on these FAQs in good faith and it results in an underpayment, you won't be subject to negligence or accuracy-related penalties.

This is a live, evolving policy. The EFTPS sunset for individuals, the business refund direct deposit rollout, and the international payment alternatives are all still being developed. We'll update as the IRS publishes more.

Have questions about how the paper check phase-out affects your refund or payment? Call or text (323) 900-0305, or book a free 20-minute review. We'll walk you through exactly what's changing and what you need to do.

All State Tax Resolution, Inc. — federally licensed Enrolled Agent firm. Every case is different; results depend on individual circumstances and are never guaranteed. General information, not individual tax or legal advice.

Recent Posts

See All

Comments

bottom of page